Nigeria’s strategic pivot toward natural gas is yielding substantial financial dividends, with export revenues climbing to $2.53 billion in the first quarter of 2026.
According to the latest Balance of Payments Highlights released by the Central Bank of Nigeria (CBN), gas export receipts grew by 12.95% quarter-on-quarter, up from the $2.24 billion recorded in the final quarter of 2025.
The surge in gas revenue underpins a much stronger external trade position for Africa’s largest economy. It coincides with an aggressive national strategy to expand gas production, optimize infrastructure, and diversify foreign exchange earnings away from a historical, hyper-dependence on crude oil.
Driving the External Surplus
The apex bank’s data highlights a remarkable turnaround in Nigeria’s trade balance. Supported by the steady climb in gas revenues, alongside robust crude oil exports ($8.11 billion) and refined petroleum exports ($2.37 billion), Nigeria’s overall current account surplus skyrocketed by 255.7% quarter-on-quarter to hit $4.98 billion in Q1 2026.
The financial boost from the energy sector was further amplified by a dramatic 87.5% drop in refined petroleum imports, which plummeted to $310 million from $2.48 billion in Q4 2025—a decline analysts attribute to growing domestic refining capacity. Consequently, the nation’s core merchandise trade engine—the goods account—recorded a massive surplus of $5.95 billion for the quarter.
The Shift to a Gas-First Economy
Industry experts note that the upward trajectory of gas earnings reflects steady infrastructure utilization. Data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) indicates that aggregate daily natural gas production hovered near 7.93 billion standard cubic feet per day (bcf/d) by mid-quarter, with commercial export volumes holding strong at roughly 40% of total output.
For a country historically vulnerable to the volatile swings of global oil prices, the consistent growth in gas monetization offers a structural buffer. The federal government’s “Decade of Gas” initiative has continued to prioritize processing facility expansion and regional pipeline connectivity, keeping international shipments fluid to major buyers across Europe and Asia.
With Nigeria’s gross external reserves climbing to $48.35 billion at the end of March 2026—up from $45.75 billion in December 2025—the Q1 numbers suggest that the country’s broader macroeconomic stabilization policies are finding solid footing, anchored firmly by a diversifying energy portfolio.
SOURCE: thebossnewspapers.com